Pricing Transparency to Offer Conveyancing Sector Opportunity to Prove Its Worth

Forget about a potential Brexit showdown in Westminster in mid-December; D-Day for Conveyancers is 6 December 2018, when firms will have to provide clear up front fees as part of new Solicitors Regulation Authority (SRA)^[1] and Council of Licenced Conveyancers (CLC)^[2] transparency rules.

These have been put in place in an effort to give customers more clarity.

The benefits of price transparency

The idea of unprecedented transparency has got some nerves jangling in the sector that this will be a ‘race to the bottom’, but it is worth reflecting that a few years ago, marketing professors from Harvard Business School[3] carried out a study into the effectiveness of price transparency. Sceptics might be surprised to find out that they found when a firm voluntarily discloses its costs, the consumer is more attracted to the brand – so in fact these changes could result in a ‘race to the top’.

Some solicitors have already found this to be the case. A recent SRA[4] survey found that – while only 18% of firms currently advertise their prices – 57% of those that did were motivated by attracting more clients and 31% by becoming more competitive. These firms already seem to understand the business benefits of being upfront with clients.

Importantly, transparent pricing is an opportunity to demonstrate the benefits of the conveyancers’ service, which is often under-valued by the consumer. Opaque pricing may have bred some dissatisfaction with consumers who see the process as an expensive transaction rather than a value-add. Now, under the new rules conveyancers will be able to use their prices as a way to market their business, and be more overt as to exactly what conveyancers do for their clients.

Trust is key for conveyancing success

By outlining precisely what a consumer is getting for their money, it will help build trust between conveyancers and their clients, because it creates accountability on behalf of the conveyancer. And as we know, that builds trust.

A recent YouGov survey[5] of almost 500 homebuyers in England and Wales found that nearly 20% of homebuyers choose to use a lawyer based on recommendations from family and friends, and a further 15% made their choice based on a firm’s general reputation. Those firms that are open and transparent in their dealings with customers will therefore be in prime position to engender loyalty, repeat business and referrals – the real drivers of successful conveyancing.

In fact, only 6% of customers picked a conveyancer on the basis they were the cheapest. Clearly, for most people, the old adage ‘you get what you pay for’ is pertinent when weighing up legal services.

It’s also worth considering that millennials – who are conveyancers’ fastest growing client base – are leading much of the market sentiment around trust and cost. Studies[6] have shown that they are driving the push towards seeking out quality products and services versus the cheapest option.

Transparency needn’t be onerous

Regardless of the efficacy of transparent pricing, changing the way you do business can be expensive and time-consuming, and producing a price for every unique transaction may seem daunting. But it needn’t be onerous for conveyancing firms to adhere to the new regulations.

The technology needed to create instant price quotations is available easily and instantaneously to all conveyancers. For example, Search Acumen has designed and launched a free online quotation tool for its clients that allows for quick and accurate fee calculations associated with a sale or purchase of a property.

Adding a quotation tool to a website is quick and simple and means potential clients can receive an instant quotation without any input from the conveyancer.

Transparent pricing will go a long way to demonstrate the importance of a well-qualified, proactive conveyancer. It will hold the industry more accountable and will allow the best to shine – so why not embrace it as an opportunity? By showing your worth, a good conveyancer can only get better.

Written by Andy Sommerville, Director at Search Acumen

[1] https://www.sra.org.uk/solicitors/guidance/ethics-guidance/price-transparency.page

[2] https://www.clc-uk.org/clc-publishes-guidance-ahead-of-new-transparency-rules-coming-into-force/

[3] https://hbswk.hbs.edu/item/lifting-the-veil-the-benefits-of-cost-transparency

[4] https://www.sra.org.uk/documents/SRA/research/price-transparency-legal-services-market.pdf

[5] https://www.clc-uk.org/home-buyers-in-the-dark-over-fees-lawyers-pay-for-their-work/

[6] http://www.firstinsight.com/press-releases/quality-more-important-than-price-study

Kindly shared by Search Acumen